KARACHI: Federal Energy Minister Engineer Khurram Dastgir Khan on Wednesday said the ‘complex’ financial matters pending between the K-Electric and federal government will be sorted out in next few weeks.
He said the prime minister has announced a major relief package of around Rs 22 billion for the 17.1 million power consumers who will be exempted from fuel charges adjustment on electricity bills. Dastgir said the fuel surcharge, added to the bills of July, had been abolished for the consumers of below 200 units.
Also, the prime minister has resolved the issue of fixed tax on retailers which was imposed in the federal budget for the fiscal year 2022-23.
Those who had paid their bills would be given relief in their power bills next month while those who haven’t paid would get their bills revised. Besides, the fuel surcharge for the agricultural consumers had also been abolished. The minister said the fixed tax imposed on commercial meters would also be abolished from October 2022.
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Dastgir said power consumers had received increased electricity bills due to the fuel surcharge of June which was added to the bills of July. The minister said although the consumers had utilized lesser electricity during July as compared to June, however, they received inflated bills which included the surcharge of June.
Also, he said the power ministry, under the vision of Prime Minister Shehbaz Sharif is working on modernization and upgradation of distribution companies and emphasizing on use technology for power theft reduction.
Addressing a press conference at K-Electric head office here, the minister asked KE to modernize its system, and conduct load shedding from transformer (PMT) level instead of grid stations, so that the star consumers living in high-loss areas or very high-loss areas may not be subjected to load shedding.
“We will not leave the loyal consumers (who pay electricity bills regularly) at the mercy of prolonged load shedding and soon we will come up with a mechanism in this connection,” the minister added.
Khurram said he also visited Hesco and issued directions to resolve consumers’ complaints related to overbilling, load shedding, meter installations, etc.
He said the purpose of his Karachi visit is to have detailed meeting with KE management on host of issues including the pending financial matters.
He said the KE’s financial dispute is complex and involves hundreds of millions of rupees. However; progress has been made and the matter will be resolved in next few weeks. “We have the support of federal finance ministry, in this regard,” the minister maintained.
Elaborating, he said that KE has to pay a handsome amount to different federal departments, including SSGG on account of fuel purchase while KE also asks the government to clear its Tariff Differential Subsidy (TDS).
The minister said the purpose of his visit is to have further deliberations with KE on financial meters.
A rigorous reconciliation process is under way between the energy ministry and the power utility.
Also, he said the PML (N)-led coalition government wants to ensure smooth yet affordable electricity supply to consumers of Karachi.
The federation is committed to ensuring relief to consumers and protect their interests, he said and added that the contract with KE was not on commercial basis.
The KE has been receiving an average 1,000 MW from NTDC on ad hoc basis; since the 650 MW power supply agreement has already been expired.
The minister said the country is still facing power shortfall of up to 6,000 mw. The peak season power demand recorded around 30,000 this year, while the total generation is not more than 24,500 mw. The plants installed back in 1980s and 90s are now inefficient.
He blamed the PTI government for not making progress on a number of power projects including the 1,320 MW Shanghai Electric’s project in Tharparkar that were executed by the PML-N government before 2018.
He said the government will no more execute any plant on imported fuel. Only indigenous power resources such as solar, wind, thermal and above all the Tharparkar coal will be utilized.
The minister announced that the fixed tax imposed on commercial meters would also be abolished from October 2022.
He said the incumbent government had focused on the alternative energy and soon power production would start from Thar coal.
To a question, the minister replied that restructuring of the Nepra was under way. The regulatory body during the tenure of previous government was not working on its primary function that is revision of rates, he said.
To another question, he said unfortunately the privatization of K-Electric didn’t deliver the required results. However, efforts were initiated to improve its working for achieving the desired results.
Copyright Business Recorder, 2022
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